CHAPTER 3

TECHNICAL STUDY
This study evaluates the details of how to intend to deliver a product of the
proposed business to customers. It is an assessment of the logistical aspects of
a business operation. It includes segments on necessary materials, labor and
technology and structural aspects of the business, and the means of shipping or
transporting goods.

A. Product and Service

The proponents have decided to establish a business venture that will
be focusing on producing a “Solar Powered Generator”. This proposed
product and business will be the first not just in Daet but in the whole province
of Camarines Norte. The proposed business was conceptualized since the
proponents saw the possibility that a generator could be through from solar
energy because the proponents saw that the energy produced are enough in
the province Camarines Norte weather condition from the sun known as solar
energy. 

The Sun’s energy comes from a nuclear fusion reaction that takes
place deep in the sun, where hydrogen nucleus fuses into helium nucleus.
When such a reaction takes place then a tremendous amount of energy is
produced and this is escaped into the space. Sun is the primary source of
Energy. The earth receives 16 x 1018 units of energy from the sun annually,
which is 20,000 times the requirement of mankind on the Earth. Some of the
Solar Energy causes evaporation of water, leading to rains and creation of
rivers etc. Some of it is utilized in photosynthesis which is essential for
sustenance of life on earth. Man has tried from time immemorial to harness
this infinite source of energy. But has been able to tap only a negligible
fraction of this energy till today. The broad categories of possible large-scale
applications of solar power are the heating and cooling of residential and
commercial buildings.
 Figure 3.0
Solar Powered Generator Design

Product Specifications:
 Size: Height: 3 feet, Length: 1 meter, Width 1 meter
 Weight: Approximately 10 kilograms
 50W 12V Solar Panel Monocrystalline
 20AH Lead acid battery (Maintenance free)
 500W 12V Modified Sine Power Inverter
 20Amps Solar Charge Controller (PWM)
 Output: 4gangs 12VDC Terminals/ 5VDC USB/AC 220V
 Safety fuses
 Powder coated metal enclosure, plastic handles and rubber feet
  The chemical and Biological conversion of organic material to liquid solid
and gaseous fuels
 Conversion of solar energy to Electricity.
 1200 Solar Panel dimensions: 164x99x4cm / weight: 2Kgs.

Solar Panel

Height: 3-feet Cover

Width: 1 meter
Proposed Solar Powered Generator
Figure 3.1

In this proposed project business, the proponents use the solar energy for
the generation of electrical energy, by using solar cells. The solar cell receives
the solar energy. The solar cells operate on the principle of photovoltaic effect, by
using solar cells. Basically, the cells are placed in an open and fixed manner.
Design and Fabrication
The design and fabrication of a typical solar powered fan can be explained
with the help of a block diagram. The block diagram describes a simple solar
powered fan with a manual. Let us study the block diagram in detail by
classifying it into three sections.

Input Section
The input section includes photovoltaic arrays consisting of solar cells.
The solar cells are connected in parallel to get the maximum current.

The characteristics of the solar cell array are as below:

 Type of semi-conductor used for cell: silicon
 Number of arrays: 2
 Power: 36-watt x 2 = 72 watt
 Open circuit voltage: 21v
 Short circuit current: 3.6 ampere
Storage Section
The storage section includes a battery. The characteristics of the
battery are as below:
 Type: Lead acid tubular battery
 Ampere hour efficiency: 90 to 95%
 Watt hour efficiency: 70 to 80%
 Capacity: 40 AH, 12V.
The characteristics of controller are as below:
 Low voltage cut off
 Over charge disconnect
 Operating current: 10 ampere
Output Section
Output system includes various devices and equipment used for the
distribution of the power.
Switch
 Manual ON/OFF
Wires
 Type: 2 cores with sleeve
 Quantity: 10 meters
 High copper rich 10amp wire for minimum power loss.

Inverter
Figure 3.2
Components and their functions
The various components of a typical photovoltaic power generation system are
1. Solar photovoltaic array
2. Battery Bank
3. Charge Controller
Solar Photovoltaic Array
 The solar photovoltaic array consists of an appropriate number of solar
cells connected in series and or parallel to provide the required current and
voltage. The array is so oriented as to collect the maximum solar radiation
throughout the year.

There may be tracking arrays or modules or fixed arrays. A tracking array

is defined as one which is always kept mechanically perpendicular to the sun
array line so that all times it intercepts the maximum isolation. Such arrays must
be physically movable by a suitable prime mover and are generally considerably
more complex than fixed arrays. A fixed array is usually oriented east west and
tilted up at an angle approximately equal to the latitude of the site. Thus, the
array design falls into two broad classes:
 Flat Plate Arrays
The arrays are placed by using by suitable adhesive
This technology springs from the space associated photovoltaic
technology and many such arrays have been built in different power sizes.
 Concentrating Arrays
Where in suitable optics, e.g. Fresnel lenses, parabolic mirrors are
combined with photovoltaic cells in an array fashion. This technology is relatively
new to photovoltaic in terms of hardware development and comparatively fewer
such arrays have actually been built.
Battery Bank
In most alone PV power systems, storage batteries with charge regulators
have to be incorporated to provide a back-up power source during periods of low
solar irradiance and night. Several types of accumulators are available in the
market for use in PV power systems. The main requirements to be met by an
accumulator for solar power system are,
 Ability to withstand several charge/discharge cycles.
 A low self-discharge rate
  Little or no need for support

The amount of room of an apparatus for producing electric current is the

Total amount of electrics that can be outlined from a fully requested apparatus for
producing electric current at a fixed send out rate and electrolyte temperature
until the electric force falls to a detailed least possible or recorded. It is expressed
in unit of measure of electric current hour. The amount of room of the apparatus
for producing electric current also depends upon the temperature and existence-
stage of apparatus for producing electric current.

The electric units in most PV systems are of lead acid letters used for
printing made up of one or more 2v small rooms. Each small room has a positive
plate of lead peroxide and a not plate of sponge lead. The electrolyte is dilute
Sulphur acid. During firing, letting off when current is outlined from it, the material
of both plates changes to lead sulphate and water What is in the electrolyte
increases thereby making feeble, poor its special weight.

When the apparatus for producing electric current is requested by going

past, through electric current through it in the opposite direction, the opposite
chemical reaction takes place. The small room measured in volts are
representatively 2.4v and 1.9v for fully requested and deeply sent out apparatus
for producing electric current separately. Lead acid electric units self-discharge
slowly when not in use.

3.3 Charge Controller

 Overcharging of some electric units results in loss of electrolytic, slow
destruction (by acid), plate growth and loss of action-bound material from the
plates, causing copies of smaller size in apparatus for producing electric current
existence. In addition, the redone unsuccessful person to get stretched full go
forward also leads to stratification of electrolyte. In this way, there is a need of go
forward controllers to optimize the apparatus for producing electric current
existence.
Most go forward controllers start the charging process with a high current
and get changed to other form it to a very low level when a certain apparatus for
producing electric current electric force is obtained. A by numbers, electronic
based go forward regulator computer looking-glass the apparatus for producing
electric current, and electric force works out the level of go forward and keeps
control the input and output currents so in connection with both overcharging and
more than enough substance let go.
Advantages of Solar Powered Generator:

 Direct room temperature conversion of light to electricity through a simple

solid-state device.

 Due to the absence of moving parts noiseless operation of power

generation.

 Pollution free atmospheric condition due to the absence of smokes and

fumes.

 They have a long effective life.

 They are highly reliable

 They are working with freely available solar energy; hence fuel cost is
zero.

 Operating cost, maintenance costs are minimum as compared to the other

type of power generation systems.
  They have wide power handling capability from Microwatts to Kilowatts or
even Megawatts. When modules are combined into large arrays. Solar
cells can be used in combination with power handling circuitry to feed
power into utility grid.

B. Manufacturing Process

Planning and Designing

Preparation of Materials
and tools

Measuring

Assembling

Wire Connecting
 Testing

Finishing

Figure 3.3
General Manufacturing Process

DETAILED STEP BY STEP PROCESS

Step 1: Prepare the necessary tools and equipment.

STEP 2: Assemble the metal structure and welding the metal to the right
measurements.
 STEP 3: Connect the inverter to the battery with the wires.

STEP 4: Connect the negative wire to the negative pole of the battery first, then
positive.

STEP 5: Connect the charge controller to the battery and the solar panel.

STEP 6: Make sure to connect the wire to the negative pole of the battery first, then
the positive.
STEP 7: Fix the panel outside to charge in the sunlight. Position it so it will be
exposed to the maximum amount of sunlight.

STEP 8: Put the accessories to the metal and set up to the right area inside the
cage.

STEP 9: Finished product.

 C. Business Operation and Production Schedule

Solar Power Generator arrangement will provide productivity in the office

and production. Following to a daily timetable helps office workers of the
proposed business manage their time more effectively, which supports individual
performance and overall company throughput. In addition, scheduling employees
allow businesses to remain in compliance with the employment regulations that
control and enforce fair labor standards and record-keeping.

Table 3.0
Sales Capacity for Portable Solar Powered Generator
Number of items sold yearly
Product Name
2021 2022 2023 2024 2025
Solar Powered
84 88 93 97 102
Generator
Total 84 88 93 97 102

Table 3.0 shows the projected sales capacity for the product solar powered generator of
the proposed business. Since the business is still in the introductory stage, there will be
a conservative increase yearly, the business will increase their production as well as the
sales by only five percent (5%) per year as an assumption of the proponents.
 Table 3.1
Production Schedule

Responsible
Activity Description Person Duration
Planning and Creating blueprint and budgeting of Production head
Designing needed materials and Technician 2 hours
Preparation of Arranging the needed tools and Production 30
Materials and tools materials Worker minutes
Includes sizing (length, width and Production
Measuring (Size) weight) Worker 1 hour
Connecting the external parts of the Production
Assembling product Worker 1 hour
Wire Connecting Linking of necessary electric wirings Technician 2 hours
Take measure to check the quality and 30
Testing performance the product Technician minutes
Includes painting of the product and Production
Finishing adding decorations Worker 1 hour

Table shows the production schedule of making the solar powered generator from planning up
to finishing. The total time (duration) of making the product will be estimated to eight (8) hours
but each activity will be having different schedule depending when the customer needs it.

Table 3.2
Business Operational Hours

 Department Operational Hours Schedule (Days) Total Operational

 Hours/day
9:00 AM to 6:00 pm (w/ 1hr
Production break) Mon-Sat 8 hours
10:00 AM to 7:00 pm (w/
Administrative 1hr break) Mon-Sat 8 hours
9:00 AM to 6:00 pm (w/ 1hr
Selling break) Mon-Sat 8 hours

There are different business operational hours with Solar Powered Generator. The
production and selling will operate eight (8) hours from Monday to Saturday while
administrative/office will operate from 10:00 AM to 7:00 PM.

Table 3.3
Employee Working Schedule

Staff Mon Tue Wed Thu Fri Sat Sun

Administrative WD WD WD WD WD WD WL
Employees
Production WD WD WD WD WD WD WL
officers/staff
Seller/Cashier WD WD WD WD WD WD WL

Table 3.3 shows the schedule of working operation days of the staffs for the whole week
of Solar Powered Generator. It can be noticed that schedule of employees is seven (6)
days per week except for utility that will work on Sunday for four (4) hours.

Legend:
WD= Worker Day WL= Worker Leave
D. Machinery and Equipment

The machineries and Equipment are vital for the Solar Powered Generator
business to make the process more accurate and faster. The proponents of the
proposed business plan carefully will be able to control the office equipment
expenditures by only buying the essential equipment the business really needs.
The proponents of this feasibility study believe that when machines are running
effectively, the business is running smoothly.
Table 3.4
Fixture and Furniture

Picture Item Unit Total Useful

Qty. Depreciation
Description Cost Cost Life

6,000.0
1 Sofa Set 6,000.00 5 1,200.00
0

3,000.0
2 Desk 6,000.00 5 1,200.00
0

Revolving 1,500.0
1 1,500.00 5 300.00
Chair 0
 2 Monoblock 550 1,100.00 5 220.00

3,000.0
2 File Cabinet 6,000.00 5 1,200.00
0

Total 20,600.00   4,120.00

Source: HP Superstore

Furniture and Fixture cost will have expected to remain constant for next five (5)
projected years.

Table 3.5
Office Equipment

Picture Item Total Useful

Qty Unit Cost Depreciation
Description Cost Life

Fire
3 1,200.00 3,600.00 5 720.00
Extinguisher

Auto-
1 emergency 5 100.00
500.00 500.00
Light

1 Generator 20,000.0 5 4,000.00

20,000.00
0

1 Alarm 5 80.00
400.00 400.00

2 Stand Fan 5 800.00

2,000.00 4,000.00
 CCTV
3 5 899.40
Camera 1,499.00 4,497.00

Computer
2 8 1,000.00
Set 4,000.00 8,000.00

Android
1 5 500.00
Phone 2,500.00 2,500.00

Total 43,497.0
8,099.40
0
Source: Arp Computer Store and City Hardware

Office Equipment cost will remain constant for next five (5) years.

Table 3.6
Tools and Equipment
Picture Item Unit Useful
Qty. Total Cost Depreciation
Description Cost Life

Welding 3,60 720.

2 1,800.00 5
Gun 0.00 00

Welding 8,00 1,600.

2 4,000.00 5
Machine 0.00 00

3,60 720.
3 Mini Drill 1,200.00 5
0.00 00

Digital
80 160.
2 Clamp 400.00 5
0.00 00
Meter
 Hot Glue 50 100.
1 500.00 5
Gun 0.00 00

Cordless
drill with 4,49 899.
3 1,499.00 5
screw driver 7.00 40
(set)

Soldering 2,50 500.

1 2,500.00 5
Station 0.00 00

2 Metros 400.00 800.00 5 160.00

Total   24,297.00   4,859.40 

Source: www.shoppee.com
E. Plant Location

SOLAR
POWERED
GENERATOR

Figure 3.5
Site Location
E. Plant Layout

Figure 3.6
Floor plan

PRODUCTION AREA
PRODUCTION TABLES

Figure 3.6
 Layout for Solar Powered Generator business is the organized
arrangement of a business’s physical facilities to enhance the efficient use of
machines, material, equipment, energy, and the workers. It can also be defined
as the plan or act of planning an ideal facility arrangement, which include
equipment, storage space, workers, machines, inventory flow, and other services
that enhance production, alongside the design of an efficient structure to
accommodate the facilities.

Adjusting an ineffective layout is quite expensive; hence the need to

design a functional plant layout right from the onset. Designing and operating an
effective plant layout that can promptly and efficiently adjust to the requirements
of ever-changing technology and customer demands is becoming increasingly
vital to the success of manufacturing companies.

Since the administration of proposed business is open for expansion, the

facility layout and design are an important component of business’ overall
operations, both in terms of maximizing the effectiveness of the service process
and meeting the needs of employees. The basic meaning of facility of the Solar
Powered Generator is the space in which a business activity take place. The
layout and design of that space impact greatly how the work is done; the flow of
work, materials, and information through the system.

Other benefits of a well-designed plant layout for AJL: efficient labor

utilization, inventory handling cost reduction, and maintenance ease, accidents
and hazards reduction, enhanced productivity, manufacturing flexibility, as well
as effective utilization of staff, machines, materials, and equipment.
F. Building and Facilities

Building and facilities serve as the places of business. It serves a

function, but must also cost-effective, appealingly attractive with the local
edifying context and workable. The place to be used for the proposed
business will be rented. It has a total floor are of 7.5 x 7.5 meters located at
Iglesia St., Barangay VII, Daet Camarines Norte. The rental charge of the
place is P8, 000.00/month. The lessee will shoulder renovation improvement
and installation of some facilities with electrical installation, water systems
and an open lot space for production operated units of Solar Powered
Generator.

The commercial space to be used for the proposed business will be

rented P 8,000 per month. It has a total floor area of 55.5 square meters,
located at Iglesia St., Barangay VII, Daet Camarines Norte. Aside from the
rented building there will be improvement in the said location such as flooring,
interior design and walls that will satisfy and attract customers. The said
improvements will be authorized by the owners.

Type of Building:

 Commercial structure
 Rent
 7.5 x 7.5 meters
Figure 3.6.1 Building and Facilities
Figure 3.6.2- Building and Facilities
Figure 3.6.4
 Figure 3.6.5- Building and Facilities

Table 3.7
Rent Expense
Space area Monthly Annually

55.5 sqm P 8,000.00 96,000.00

Table 3.7 shows the rent expense to be paid by the business every month. It has
a cost of P 8,000.00 and annual cost of P 96, 000.00. The enterprise also
maintains a two (2) month rent in advance in the amount of P 16,000.00 to be
applied to subsequent months at the business’ discretion.

Table 3.8
 Leasehold Improvement
Materials and Labor Estimated Cost Useful Life Depreciation
Ceiling works/partitions 30,732.00 10 3,732.00
Electrical works 10,077.36 10 1,008.00
Painting works 10,077.36 10 1,008.00
TOTAL 50,886.72   5,748.00

Table 3.8 shows the leasehold improvements which will be depreciated using the lease
term of ten years. The depreciation cost will be totaled 5,748.00. Detailed computation
and breakdown are presented below.
 LEASEHOLD IMPROVEMENT

Project Title : SOLAR POWERED GENERATOR

Location : BARANGAY CAMAMBUGAN, DAET, CAMARINES NORTE

Rough Estimation: ENGR. DONELL DELA PASION

DETAILED ESTIMATED OF MATERIALS

I. CEILING WORK PARTITIONS

A. Materials

86 pcs Good Lumber 2”x2”x12” KD 112.00 P5,581.00

95 pcs Marine Plywood 6 mm 310.00 13,245.80

Thk. Banahaw

40 kgs. Assorted CW nail 27.97 1,118.80

125 pcs. Qtr. C 8” 30.00 3,748.60

23,695.40

B. Labor

5 days 2 Skilled Laborer 300.00 3,000.00

5 days 2 Common Laborer 250.00 2,500.00

5,500.00

Est. Direct Cost 29,195.40

Contingency-5% 1,536.60

Item Cost P 30,732.00

II. ELECTRICAL WORKS

A. Materials

1 rolls TW wire # 3.5 mm2 Stranded 1,600.00 1,600.00

1 rolls Moldfles Pipe ¾ “ dia 350.00 350.00

2 sets C.O. Double (Toshiba) 122.00 244.00

3 sets 3-Gang Switch (Toshiba) 122.00 366.00

3 sets 1-Gang Switch (Toshiba) 46.00 138.00

2 sets 2-Gang Switch (Toshiba) 94.00 188.00

3 sets Black Cover (Toshiba) 35.00 105.00

9 pcs PVC Utility 2”x4” Poly deep type 15.00 135.00

22 pcs PVC Junction Box 2”x4” Poly deep type 22.00 484.00

4 sets 1-60 watts Incandescent Pin light 200.00 800.00

4 pcs 50 watts Bulb Phillips 30.00 120.00

4 pcs Receptacles 4”x4” Ceramics 10.00 40.00

1 set Circuit Breaker 12 Branches 1,768.49 1,000.00

1 pc Entrance Cap ¾ “ dia. 25.00 25.00

1 pc RSC Conduits Pipe ¾ “ dia. 110.00 110.00

20 mtrs. TW Wire # 8 Stranded 15.00 30.00

20 pcs PVC Clamps ¾ “ dia. 1.50 30.00

20 pcs Metal Screw w/ Tux 2” 1.50 20.00

5 rolls Electrical tape big (Amak) 20.00 100.00

2 rolls Rubber tape (Nitto) 85.00 170.00

6,823.49

B. Labor

5 days 1 Electrician 300.00 1,500.00

5 days 2 Helper Electrician 200.00 1,250.00

P 2,750.00

Est. Direct Cost 9,573.492

Contingency P 503.868

Item Cost 10,077.36

III. PAINTING WORKS

A. Materials All Boysen/Dutch Boy Brand

2 tins Flat Latex 750.00 P 1,500.00

2 tins Gloss Latex 635.00 1, 270, 00

1 tins Flat Enamel 635.00 635.00

1 tins Gloss Enamel 500.00 500.00

1 gals Concrete Neutralizer 200.00 200.00

2- gals Roofing Neutralizer 307.746 615.492

3 pcs Paint Brush 1” 15.00 45.00

3 pcs Paint Brush 4” 16.00 48.00

2 pcs Roller Brush 9” 120.00 240.00

2 pcs Roller Brush Tray 85.00 170.00

1 gals Lacquer Thinner 350.00 350.00

1 lit Pulituff w/ hardiner 150.00 150.00

5,723.492

B. Labor

7 days 1 Common Laborer 250.00 P 1,750.00

7 days 1 Skilled Laborer 300.00 2,100.00

3,850.00

Est. Direct Cost 9,573.492

Contingency-5% 503.868

Item Cost P 10,077.3

 H. Materials and Supply

Table 3.9
Solar Powered Generator

Cost per Total Cost

Materials Unit
unit (Annual)
Battery (Motolite) Pcs 1,075.00 51,600.00
Solar Panel (600 W) Pcs 5,000.00 240,000.00
Panel Board Pcs 250.00 12,000.00
Battery Holder Pcs 250.00 12,000.00
Wires (3/0 AWG) Pcs 30.00 1,440.00
Flat Bar PNS Steel Grade Pcs (10mm x 3/8
500.00 24,000.00
33 inches)
Inverter Pcs 2,500.00 120,000.00
Controller Pcs 800.00 38,400.00
Screws Pcs 45.00 2,160.00
Total 501,600.00
Source: Based from the proponent’s research and canvassing of material prices

Table shows the needed materials for making the Solar Powered Generator. The total
cost in the given table was based from the total annual capacity of the business with
eighty-four (84) units in the first year (2021) and assumed to increase five percent (5%)
annually.

I. Utilities
 The utilities are another important consideration for making the Solar
Powered Generator. The propose business will ensure that while cutting the
consumption of utilities, none of the business processes get impacted in any
way. It will mean that the propose business can continue with their business as
usual. That is why the proposed business will only gain from such instructions
rather than suffer any consequences due to them. The business will not be
possible if the utilities providers are not existed. In order to have operative
service of the business, some aspects are to be considered, such as electricity,
and water systems which help the business to operate easily.
• Electricity

The proposed business will get its electricity supply from the said
cooperative and will used the rate of 8.73 (effective as of January 2019) for
commercial connection. The Camarines Norte Electric Cooperative
(CANORECO) will supply electricity to the enterprise. There are those types of
connection offered by CANORECO such as for residential, commercial and
public building connections.
 Water
. The PRIME WATERS-CNWD also will provide the business as being the
primary provider of water supply. The province of Camarines Norte which twelve
(12) municipalities actually has open line connection with water utility which is the
Camarines Norte water District (PRIME WATERS-CNWD) providing potable and
safe drinking water.
 Communication
PLDT will be the provider of telephone (landline) and internet services of
SOLAR POWER GENERATOR. PLDT known as Philippine Long Distance
Telephone Company is the largest telecommunication and digital services
company in the Philippines and known as internet service provider.
 Postpaid Services
The primary provider of the postpaid load of SOLAR POWERED
GENERATOR is the Globe Telecommunication company.
 Table 3.10
Water Consumption
Approximately 20 Multiply by 2 for Monthly Cost Annual Cost
cubic meter per commercial
month

*1-10 cubic meter fix at P 202.00 404.00 4,848.00

**11-20 costing 24.25 per cubic meter 485.00 5,820,00

TOTAL 889.00 10,668.00

Source: Prime Waters-CNWD

Table 3.11
Communication
Communication Monthly Annually

PLDT P 1,500.00 P 12,000.00

Source: PLDT Home DSL

 Table 3.12
Power Consumption

Item Units Watts Usage Rate Monthly Annually

Administrative and Selling
Bulb Philip 4 10 8 8.73 67.05 804.56
CCTV Camera 2 100 1 8.73 41.90 502.85
Computer 1 450 8 8.73 754.27 9051.26
SUBTOTAL 863.22 10,358.67
 Production
Mini Drill for
1 240 8 8.73 402.28 4827.34
production
Welding
2 240 8 8.73 804.56 9654.68
Machine
Digital Clamp
2 80 8 8.73 268.19 3218.23
Meter
Hot Glue Gun 1 50 8 8.73 83.81 1005.70
Soldering
1 240 8 8.73 402.28 4827.34
Station
Bulb Philip 4 10 8 8.73 67.05 804.56
Electric Fan 2 70 6 8.73 176.00 2111.96
SUBTOTAL 2204.15 26,449.80
3,067.3
TOTAL 36,808.47
7

Source: Computation of Power Rates are based on the data given by CANORECO, effective on
January 2019 to present

Sample Formula:

Monthly cost = Wattage x units x usage x no. of days monthly x Rate

1,000 watts
 Table 3.13
Load Allowance
Load Monthly Annual Cost
Globe Sim 150.00 P 1,800.00
Source: Globe Sim plan
Globe Sim plan (Unlimited text and calls for all-networks and free Facebook). Load
allowance is expected to increase for next five (5) projected years by two percent (2%).

J. Waste Disposal

The Solar Power Generator will mostly produce electronic waste. The
proponents have planned to recycle. But it can be challenging because discarded
electronics devices are sophisticated devices manufactured from varying
proportions of glass, metals, and plastics. The process of recycling can vary,
depending on the materials being recycled and the technologies employed, but
here is a general overview of the proponents.

Collection and Transportation: Collection and transportation are two of the initial
stages of the recycling process, including for e-waste. Recyclers place collection
bins or electronics take-back booths in specific locations and transport the
collected e-waste from these sites to recycling plants and facilities.

Shredding, Sorting, and Separation: After collection and transportation to

recycling facilities, materials in the e-waste stream must be processed and
separated into clean commodities that can be used to make new products.
Efficient separation of materials is the foundation of electronics recycling.
Shredding the e-waste facilitates the sorting and separation of plastics from
metals and internal circuitry, and waste items are shredded into pieces as small
as 100mm to prepare for further sorting.
Further mechanical processing separates aluminum, copper, and circuit boards
from the material stream—which now is mostly plastic. Water separation
technology is then used to separate glass from plastics. The final step in the
separation process locates and extracts any remaining metal remnants from the
plastics to purify the stream further.

Preparation for Sale as Recycled Materials: After the shredding, sorting and

separation stages have been executed, the separated materials are prepared for
sale as usable raw materials for the production of new electronics or other
products.

Additionally, one of the services implemented by the Solar Powered

Generator shall be the cleaning of trash after the employees have stayed in the
office. The crews shall clean the office area as soon as a customer (or a group of
customers) has vacated a place. A dump area is provided for the businesses
within Daet, Camarines Norte. A municipal garbage truck picks up trash from this
area every day. Crews of the Solar Powered Generator shall have a trash bin
accessible for the waste of customers and another one for the waste of the
business operations. Every day after operating hours, the crews shall empty both
waste bin.
K. Production Cost

Table 3.14

Table shows the total production costs of making Solar Powered Generator. It can be
noticed that the allocated rate for administrative and production is fifty percent (50%).
The total production cost annually is Php 1,138,875.30.
L. Labor Requirements

The following regulations are in place to protect workers and potential

hires and require that you treat your workers fairly, provide them with benefits
and a safe workplace, and contribute to local government employment. The
compensation of each employee of Solar Powered Generator for Administrative
employees will be higher than the minimum rate for businesses in Bicol Region.

The minimum rate in Bicol region is Php 310.00 per day, implemented on
January 2018 to present according to Department of Labor and Employment.
The Department of Labor and Employment (DOLE) has implemented a P30-
increase in the daily wage of workers in Bicol, which had the highest inflation rate
among regions in August 2017.The starting daily rate for the employees of
SOLAR POWERED GENERATOR for common workers including Gasoline
Station and Carwash attendants and Cashier is the minimum rate, Php 310.00
daily.

Additionally, the basic salary, the Solar Powered Generator will be also
responsible to comply with the basic benefits and government premiums
including SSS, Pag-ibig fund, and Philhealth. 13 th Month pay will be also
implement to the employees of the business. The 13th month pay means one
twelfth of the basic salary of an employer to an employee for the services
rendered.

 Salaries and Fringe Benefits

The employer will deduct a right percentage in the salaries of his/her

employee that will be remitted to the following agencies for the benefit of his/her
employee.

 Social Security System (SSS)

There will be a percentage of deduction in the salaries of employee for

his/her protection in terms of old age, accidents, and death. The monthly
contributions are based on the compensation of members. The current SSS
contribution rate is 11% of the monthly salary credit not exceeding P16,000 and
this is being shared by the employer (7.37%) and the employee (3.63%)

 Philippine Health Insurance (Philhealth)

Based on the Philippine code No. 0027, s.2013 there will be in employee’s
wages to be contributed in his/her Philhealth contribution for his/her benefit
incase if he/she is being hospitalized.

 Pag-ibig contribution

It is mandatory for employees to pay Pagibig Fund contributions every

payroll or whenever they receive their salaries. This is automatic and done by the
employer every payroll. It is also important for employers to remit and submit
reports to Pagibig regarding all their employees’ contributions.

 13th Month Pay

13th month pay means one twelve (1/12) of the basic salary of the
employees within a calendar year. Basic salary includes all remunerations or
earnings paid by the employer to an employee for services rendered
 Table 3.15
Salaries and Wages
Number of
Position Rate per Day Monthly Annually
Employees
Administrative Overhead
General Manager 600 1 14,400.00 172,800.00
Finance
500 1 12,000.00 144,000.00
Manager/Cashier
Marketing Manager 500 1 12,000.00 144,000.00
Bookkeeper -- 1 -- 1,000.00
Subtotal 38,400.00 461,800.00
Direct Labor
Production
Manager/Quality 500 1 12,000.00 144,000.00
Inspector
Production workers 310 2 14,880.00 178,560.00
Technician 310 1 7,440.00 89,280.00
Subtotal 34,320.00 411,840.00
Total 72,720.00 873,640.00

Salaries and wages for both administrative and direct labor will be expected to increase
five percent (5%) annually.

Table 3.15
Remittances and Contribution
 Employee Number of Philhealt Pag- E Monthly Annual
SSS Total
Position Employees h ibig C Cost Cost
Administrative Overhead
General
1 396 100 10 1,061.28 1567.28 1567.28 18,807.36
Manager
Finance
Manager/Cashie 1 330 100 10 884.4 1324.4 1324.4 15,892.80
r
Marketing
1 330 100 10 884.4 1324.4 1324.4 15,892.80
Manager
Subtotal 5,216.08 50,592.96
Direct Labor
Production
1 330 100 10 884.4 1324.4 1324.4 15,892.80
Officer
Production
2 409.2 200 10 1,096.66 1715.86 1715.86 20,590.32
worker/Laborer
Technician 1 409.2 200 10 1,096.66 1715.86 1715.86 20,590.32

Subtotal 4,756.00 57,072.00

Total 9,972.08 119,664.96

Remittances and Contribution for both administrative and direct labor will be expected to increase
five percent (5%) annually.

Table 3.16
 13th Month Pay

Position Number of Employees Total Cost

Administrative Overhead
General Manager 1 14,400.00
Finance Manager 1 12,000.00
Marketing Manager 1 12,000.00
Subtotal 3 38,400.00
Direct Labor
Production Officer 1 12,000.00
Production worker/Laborer 2 14,880.00
Technician 1 7,440.00

Subtotal 4 34,320.00

Total 9 72,720.00

13th Month pay for both administrative and direct labor will be expected to increase
five percent (5%) annually.

M. Other Expenses
 Table 3.17
Permits and Licenses

Particulars 2021 2022 2023 2024 2025

Business Permit 10,250.00 10,557.50 10,874.23 11,200.45 11,536.47
Municipal License 1,200.00 1,236.00 1,273.08 1,311.27 1,350.61
Zoning Permit 300 300 300 300 300
Fire safety
100 100 100 100 100
clearance
Barangay
1,500.00 1,545.00 1,591.35 1,639.09 1,688.26
Clearance
Community Tax
500 515 530.45 546.36 562.75
Certificate
DTI promotional
515 530.45 546.36 562.75 579.64
Permit
Annual Inspection
200 206 212.18 218.55 225.1
Clearance
Bureau of Internal
500 515 530.45 546.36 562.76
Revenue
Business Plate 200 309 318.27 327.82 337.65
Documentary
15 15 15 15 15
stamp
Environmental
Compliance
500 - - - -
Certificate (DENR-
EMR)
Certificate of
conforme of
facilities to
national or
accepted 1,000.00 - - - -
international
standards on
health, safety and
environment
SEC Registration 1,250.00 - - - -
TOTAL 18,030.00 15,828.95 16,291.37 16,767.65 17,258.24
Source: Actual Interview and inquiries

Table 3.18
Office Supplies
 Item
Qty Unit Unit Cost Total Cost
Description
1 Pcs Record Book P38.00
38.00
1 Pcs Columnar Book P 40.00
40.00
1 Box Pencil P 45.00
45.00
1 Box Ball pen P 60.00
60.00
4
1 Pcs Calculator P 450.00
50.00
1 Set Scissors P 30.00
30.00
6
TOTAL
63.00
Source: Hong Kong Trading

Office Supplies cost annually will remain constant for next five (5) years.
 Table 3.19
Cleaning Supplies

Item
Qty Unit Unit Cost Total Cost
Description
2 Pcs Dust Feather
20.00 40.00
1 Pcs Scissors
25.00 25.00
2 Pcs Hairnet
10.00 20.00
1 Pcs Gloves
50.00 50.00
1 Pcs Coconut Broom
60.00 60.00
1 Pcs Broom
50.00 50.00
4 Pcs Rags
5.00 20.00
1 1
1 Pcs Floor Mop
20.00 20.00
1 2
2 Pcs Trash Can
00.00 00.00
Garbage Bag- 1 1
1 Pck
Large 50.00 50.00
1
4 Pcs Scotch Brite
40.00 20.00
Dishwashing
350 Ml
Liquid 20.00 40.00
2 Pcs Cleaning Soap
40.00 80.00
97
TOTAL  
5.00
Source: 101 Department Store
 Table 3.20
Qty. Item Description Unit Cost Total Cost
5 Glue Stick (Set) 15.00 75.00
5 Gloves 40.00 200.00
5 Googles 100.00 500.00
4 Welding Bandana 50.00 200.00
2 Welding Jacket 200.00 400.00
2 Leather Apron 200.00 400.00
2 Welding Helmet 150.00 300.00
Total 2,075.00
Factory Supplies

Table 3.21
Advertising and Promotion

Item Monthly Cost Annual Cost

Tarpaulin 300.00 3,600.00
Flyers 500.00 6,000.00
Brochure 500.00 6,000.00
Online Marketing (FB
400.00 4,800.00
boosting)- Minimum
Total 15,400.00 19,800.00

Advertising expense remain constant for five (5) projected years.